Hurricane Helene Devastates North Carolina Quartz Mines, Threatens to Cripple Global Semiconductor Supply Chain – [your]NEWS
semiconductor

Hurricane Helene Devastates North Carolina Quartz Mines, Threatens to Cripple Global Semiconductor Supply Chain – [your]NEWS

The destruction caused by Hurricane Helene in Spruce Pine, NC, has halted the mining of high-purity quartz, threatening to cripple the $600 billion global semiconductor industry.

By yourNEWS Media Newsroom

The devastating impact of Hurricane Helene on Spruce Pine, North Carolina, is causing significant concerns for the global semiconductor industry, as the town is home to the world’s purest quartz mines—a critical component in semiconductor production. The storm, which struck over a week ago, has left the small town of 2,600 people without electricity and running water, halting operations at the essential mines.

The purest form of quartz, mined in Spruce Pine, is a key material for semiconductor manufacturing, and the disruption could severely impact the $600 billion global industry. According to CNBC, companies like Sibelco and The Quartz Corp., which extract and refine high-quality quartz in the area, have paused all operations as the community struggles to recover from the storm.

“We have temporarily halted operations at the Spruce Pine facilities in response to these challenges,” Sibelco said in a statement on September 30, noting that many of their employees and families have been displaced due to the extensive damage caused by the hurricane. Similarly, The Quartz Corp. announced that operations were stopped in advance of the storm, and they have “no visibility on when they will restart,” according to their October 1 statement.

Spruce Pine’s quartz mines supply nearly the entire semiconductor industry, primarily serving manufacturers in China and other Asian countries. With roads washed away and the town’s infrastructure in disrepair, restarting mining operations is expected to take several weeks. TECHCET, a market research firm focused on semiconductor materials, estimates that it could take four to six weeks for the mines to become operational again. However, the timeline will depend heavily on how quickly the local community can restore basic infrastructure, including roads and power lines.

“This is the only plant in the world right now that serves the semiconductor industry in its entirety,” TECHCET CEO Lita Shon-Roy told CNBC. “If something were to happen to these mines, it can put the entire industry on its ear, period. There’s no other capability.”

Spencer Bost, executive director of Downtown Spruce Pine, confirmed the extent of the damage, stating that in some areas, “the roads just don’t exist anymore.” The rebuilding of the town’s infrastructure is critical to restoring operations, and until then, the semiconductor industry is operating on stockpiled quartz reserves.

Shon-Roy estimated that the industry could manage with a two to three-month supply cushion, but any longer delays could result in severe shortages. “A month’s delay is not bad,” Shon-Roy said. “Two months is getting difficult. Three months becomes a real problem.”

The fragile nature of the semiconductor supply chain has raised concerns among industry leaders and policymakers. As Andrew Chapados of The Blaze warned, disruptions like this one could shift reliance on China, which holds the second-largest share of semiconductor sales worldwide. “If supply chains in the U.S. are disrupted, at best, the market turns to China,” Chapados noted. If that option is unavailable, Europe may step in, but the cost will be significantly higher.

As North Carolina works to recover from Hurricane Helene, the global semiconductor industry braces for potential supply chain challenges, underscoring the vulnerability of critical materials in a complex and interconnected world economy.

Posted by yourNEWS Media Newsroom

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